If you were to read and obey the copyright notice on a CD we would never have made mix tapes or ripped the music to our computers. At some point the industry does not litigate because to do so would actually harm their business. This is more a nod to fair use than anything, although technically that would not apply here.

The law was created by the state to ensure creators could generate some return on their investment.

In a digital era is anyone more likely to rip the music from this video or simply grab it on a p2p or bittorent. As for the images I believe that TOS allows site member to make their own videos and the creators have actually encouraged it.

That said if we were all to obey the law to the letter, life would not be much fun. I think one has to look a little deeper to the intent of the law.